These days Bitcoin is the most well-known digital currency in the world, we cannot ignore it. Bitcoin is here to stay and I'd like to share some simple information about Bitcoins and how you can we use them.
What is Bitcoin?
Bitcoin is a digital currency and payment system, which came to be the most popular digital coin nowadays. It's the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. Bitcoin is based on computer-generated algorithms that involve cryptography for security.
Bitcoin appeared in 2009, supposedly invented by someone named Satoshi Nakamoto (possibly a pseudonym).
How do I earn Bitcoins?
First of all you must have a wallet. A wallet allows you to transact with other users. It gives you ownership of a Bitcoin balance so that you can send and receive Bitcoins.
Where do I get a wallet? What kind of wallets exist?
If you don’t have one, there are 3 ways to get one, namely:
Web wallets are online wallets to host your digital coins (Bitcoins) and often offer additional services (e.g. send or receive Bitcoins). Some available web wallets:
The most secure option, is in fact a software installed on your computer. It gives you complete control over your wallet. And although you are responsible for protecting your money and doing backups (you must do it), you can easily send money and manage all your transactions with these wallets.
Wallets for mobile, you can download them at mobile app markets (android, apple…) and obviously you have the same transaction options as with any of the other wallets. With these you can carry Bitcoins with you, in your pocket, and pay in physical stores by scanning a QR code or using NFC "tap to pay".
- Bitcoin Wallet
- Hive Android
Now that I have a wallet, how do I fill it?
Next step is collecting your first digital coins. You have a lot of choices to get them.
Like a miner diggs to find gold, you can use your computing power to solve mathematical algorithms and find Bitcoins. But to do so, you need a powerful machine otherwise your energy costs will be more expensive than the value earned. Note, the more computers trying to solve the equations, the harder the equations become to solve, and the less you get for mining. To do this you can search by a pool (group that combines their computing power to make more Bitcoins) and put your computer solving the mathematical algorithms. There are several pools available: (e.g. Slush's, BitMinter, BTC Guild)
That’s the easiest way, basically when you exchange Euros, Dollars or other currencies for BitCoins. Several companies operate in the market exchanging bitcoins..
A lot of web sites offer lower values of BitCoins (Satoshis – the small part of BitCoin) for visiting sites. “Visit our site for 5 mins and you'll receive 10 satoshis :)”
Some games provide the opportunity to earn extra coins, like in a casino.
YEAH! I have a lot of Bitcoins, let's spend some coins! :D
Currently several companies and individuals already accept Bitcoin as a payment method. You will find a long list of websites where to spend your Bitcoins here at this site: http://coinmap.org/
Don't forget to choose Bitcoin as payment method. Many websites require you to select your payment method from a list before proceeding.
It’s time to use your wallet!
If you have a web wallet:
- When displayed a similar screen to this one, copy the address and the amount in BitCoins.
- Open your wallet and choose the “Send” option. Paste both address and the correct amount. Please confirm before proceeding.
If you have local wallet:
- Select the option to pay with BitCoin and your local wallet will open automatically.
- Just confirm the amount and Pay.
If you have mobile wallet:
- The majority of mobile wallets include a QR code reader. You can use it to scan the seller QR code or you can manually introduce the address available in the purchase window.
- Confirm to proceed.
Once you proceed with payment, paid amount will be displayed in a buying window along with a success message. Payments with Bitcoins can take a few minutes to complete, depending on the settings defined by the merchant to consider a transaction complete. You may have to wait a few minutes until your purchase is complete.
Every informed person needs to know about Bitcoin because it might be one of the world's most important developments.